Menlo Park, Calif. (PRWEB) April 15, 2014
Only 2 percent of lawsuits filed in response to M&A deals that settled in 2013 produced monetary returns for shareholders. These findings are published in Settlements of Shareholder Litigation Involving Mergers and Acquisitions, which follows an earlier report on M&A filings and litigation outcomes issued this year by Cornerstone Research. Legal challenges to M&A deals resulted in only two monetary settlements in 2013, down from four in 2012 and seven in 2011.
The report also finds that plaintiff attorney fees awarded in disclosure-only settlements of M&A cases continued to drop in 2013. In addition, over the last four years, the Delaware Court of Chancery approved 80 percent of the fee amounts requested in such cases, compared with 90 percent in other courts.
Dr. Lassaad Adel Turki, senior vice president of Cornerstone Research and head of the firm’s finance practice:
We’ve seen a steady decline over the last seven years in average plaintiff attorney fees in disclosure-only M&A litigation settlements. This decrease may reflect the courts’ apparent growing skepticism for settlements where shareholders do not stand to benefit monetarily.
Olga Koumrian, principal of Cornerstone Research and author of the report:
The percentage of Delaware-incorporated target companies that settled in the Delaware Court of Chancery decreased in 2013. Delaware Chancery was the approving court in 41 percent of such settlements, compared with more than
50 percent in the prior two years.
More Key Findings
About Cornerstone Research
For more than twenty-five years,Cornerstone Research staff have provided economic and financial analysis of complex issues arising in commercial litigation and regulatory proceedings. The firm has four hundred fifty staff who work with a broad network of testifying experts to bring specialized knowledge and experience to each assignment.
Twitter at @Cornerstone_Res